Sony Posts Record Profit, Warns of Tariff Impact

Sony reported a 16% rise in operating profit to 1.4 trillion yen for the fiscal year ending in March, surpassing analyst expectations thanks to strong music and movie business performances. Despite this record result, Sony forecasts nearly flat profit growth of 0.3% for the upcoming year, as a projected 100 billion yen ($680–$700 million) impact from U.S. tariffs is expected to weigh on results. The company has increased PlayStation 5 prices in Europe and Britain due to inflation and currency fluctuations. Its gaming business anticipates 16% profit growth, supported by new first-party game sales, although some anticipated releases like 'Grand Theft VI' have been delayed. Sony is undergoing strategic changes under new CEO Hiroki Totoki, including a partial spin-off of its financial services unit to further focus on entertainment. The company continues its transformation from an electronics maker to a diversified entertainment conglomerate.